The Effect Of Regional Financial Accounting Systems And Accountability On Financial Performance And Public Transparency Mediated By Management Control Activities In Local Government Agencies (SKPD) In Banjarmasin City, South Kalimantan Province

Abstract

Introduction: The Banjarmasin City Government faces persistent financial challenges due to its heavy reliance on central government transfers and the low realization of locally generated revenue. These issues reflect inefficiencies in planning, weak internal controls, and limited public transparency. While the Regional Financial Accounting System (RFAS) and accountability are essential for improving financial governance, their effectiveness depends on the presence of strong management control activities. This study examines how RFAS and accountability influence financial performance and public transparency, with management control activities serving as a mediating factor, offering insights to enhance fiscal sustainability and local governance quality.

Objectives: This study aims to examine the influence of the Regional Financial Accounting System (RFAS) and Accountability on Financial Performance and Public Transparency, with Management Control Activities as a mediating variable, within Local Government Work Units (SKPD) in Banjarmasin City.

Methods: A quantitative approach with a survey method was employed. The population consisted of 4,565 civil servants across 33 SKPDs in Banjarmasin, with a sample size of 368 respondents selected through proportional random sampling. Data were collected via questionnaires and document reviews, and analyzed using Structural Equation Modeling (SEM) with AMOS version 24.

Results: The RFAS and Accountability significantly influence Management Control Activities. The RFAS has a direct significant effect on Financial Performance, but not on Public Transparency. Accountability does not directly influence either Financial Performance or Public Transparency. Management Control Activities have a significant direct effect on both Financial Performance and Public Transparency. Management Control Activities act as a full mediator between Accountability and both outcomes, and between RFAS and Public Transparency; and as a partial mediator between RFAS and Financial Performance.

Conclusions: Management Control Activities play a vital mediating role in enhancing both financial performance and public transparency. Strengthening accounting systems and cultivating an accountability culture must be complemented by robust internal control mechanisms to achieve effective and transparent local financial governance.